GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The resources required to satisfy our unlimited wants and needs are finite, or scarce.
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It is critical to understand how we can best allocate our scarce resources to satisfy society’s unlimited wants and needs
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Resources have alternative uses
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All of the above
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Detailed explanation-1: -Economists regard decision making as important because: (a) The resources required to satisfy our unlimited wants and needs are finite, or scarce. (b) It is crucial to understand how we can best allocate our scarce resources to satisfy. society’s unlimited. wants and needs.
Detailed explanation-2: -Economists focus on the opportunity costs of choices, they assume that individuals make choices in a way that maximizes the value of an objective defined in terms of their own self-interest, and they assume that individuals make those choices at the margin.
Detailed explanation-3: -The three basic decisions made by all economies are what to produce, how it is produced, and who consumes it.
Detailed explanation-4: -At the most basic level, economics attempts to explain how and why we make the purchasing choices we do. Four key economic concepts-scarcity, supply and demand, costs and benefits, and incentives-can help explain many decisions that humans make.